The Nunavut Homeownership Assistance Program (NHAP), launched in August as part of the Nunavut 3000 initiative, marks a significant shift from the original Homeownership Assistance Program (HAP).
NHAP offers a $250,000 forgivable loan over ten years for purchasing materials to build a home, whereas the original HAP provided materials for free and allowed homeowners to construct their houses with minimal costs. NHAP requires applicants to secure a mortgage for additional expenses such as land leases and subcontractor services, making it less accessible for many residents.
Jimmy Main of Nunavut Housing Corp noted that without a mortgage, the program would have limited participation. Historical barriers, such as land ownership issues and lender hesitance to finance construction in Nunavut, complicate access to mortgages. Local banks, including RBC and CIBC, have not adjusted their lending practices to accommodate the unique risks associated with the territory.
Concerns have been raised by local leaders like Kugaaruk Mayor Teddy Apsaktaun, who believes the financial burden of the NHAP will deter potential applicants. He argues that many residents lack the income to support the new mortgage requirements, limiting the program’s effectiveness compared to the earlier model that fostered community self-building.
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